Stay informed with CA Markets’ daily market update, providing the latest trends and insights in Forex and CFD trading. Our comprehensive analysis and expert advice are designed to keep you informed and ahead in CFD trading. Whether you’re navigating currency pairs or exploring diverse asset classes, our updates offer valuable perspectives to optimize your trading strategies. Trust CA Markets to deliver timely market analysis that empowers your decisions and enhances your trading experience.
Market Recap
The Jackson Hole Symposium became the focal point of market movements, particularly after FOMC Chairman Jerome Powell signaled a shift towards easing, stating that “the time has come for policy to adjust.” This dovish tone led to a positive reaction on Wall Street, with the Nasdaq closing up 1.5%, and both the S&P 500 and Dow Jones advancing by 1.1%. U.S. 10-year yields also dropped 5 basis points to 3.79%, while WTI crude oil surged 2.7%, closing at $75 a barrel.
In the Forex market, the U.S. dollar weakened across the board. The AUD/USD pair rose sharply from 0.6702 to 0.6798 by the end of the day, supported by the dovish remarks from Powell. Meanwhile, EUR/USD remained relatively stable, showing limited movement despite higher-than-expected ECB inflation expectations.
Day Ahead
Traders should brace for another busy week, with key economic data releases on the horizon. In Australia, monthly inflation data is set to be released on Wednesday, followed by retail sales data on Friday. These figures will be closely watched, especially in light of Powell’s recent comments, as they could influence AUD pairs.
In the U.S., attention will be on durable goods orders due tonight. After a sharp decline of 6.7% month-over-month in June, mainly driven by weak civilian aircraft orders, a rebound is anticipated. Market participants will be particularly focused on core orders, where a modest increase of 0.1% month-over-month is expected. This data could provide further direction for USD-based currency pairs.
Economic Data to Watch
- JP – June Final Lending Index CI
- CN – 1-Year Medium-Term Lending Facility Rate
- US – July Preliminary Durable Goods Orders
- US – August Dallas Fed Manufacturing Activity
Disclaimer: The information provided in this daily market update is for informational purposes only and should not be considered as financial advice. Trading Forex and CFDs involves significant risk of loss and may not be suitable for all investors. Past performance is not indicative of future results. CA Markets does not guarantee the accuracy or completeness of the information provided, and we recommend consulting with a qualified financial advisor before making any trading decisions. Users are solely responsible for their own trading activities and decisions.
